A viscous-inviscid interactive coupling method is used for the computation of unsteady transonic flows involving separation and reattachment. A lag-entrainment integral boundary layer method is used with the transonic small disturbance potential equation in the CAP-TSDV (Computational Aeroelasticity Program - Transonic Small Disturbance) code. Efficient and robust computations of steady and unsteady separated flows, including steady separation bubbles and self-excited shock-induced oscillations are presented. The buffet onset boundary for the NACA 0012 airfoil is accurately predicted and shown computationally to be a Hopf bifurcation. Shock-induced oscillations are also presented for the 18 percent circular arc airfoil. The oscillation onset boundaries and frequencies are accurately predicted, as is the experimentally observed hysteresis of the oscillations with Mach number. This latter stability boundary is identified as a jump phenomenon. Transonic wing flutter boundaries are also shown for a thin swept wing and for a typical business jet wing, illustrating viscous effects on flutter and the effect of separation onset on the wing response at flutter. Calculations for both wings show limit cycle oscillations at transonic speeds in the vicinity of minimum flutter speed indices.